Gas Corporation Reports 462.5 Billion KRW Net Profit in H1... Improvement in Overseas Business Performance

[Sejong=Asia Economy Reporter Kwon Haeyoung] Korea Gas Corporation announced on the 17th that its consolidated net profit for the first half of this year reached 462.5 billion KRW, approximately 11 times the 41.8 billion KRW recorded in the same period last year.

In the first half of last year, reflecting the sharp drop in international oil prices due to COVID-19, impairment losses of 435.7 billion KRW were recognized in projects such as the Australian GLNG project. However, this year, as international oil prices rebounded, no impairment losses occurred, and the performance of subsidiaries engaged in overseas resource development also improved significantly. The Australian Prelude project led the improvement in overseas business performance by turning a profit of 39.8 billion KRW in the first half of this year alone.

Consolidated sales increased by 4.1% compared to last year, reaching 12.5524 trillion KRW. This was due to an increase in total sales volume by 17.7%, with natural gas sales for city gas and power generation rising by 8.4% and 31.4%, respectively, compared to the first half of last year.

KOGAS expects favorable performance to continue in the second half of the year. In July, natural gas sales volume was recorded at 2,579 thousand tons, a 43.6% increase compared to the same period last year. Since overseas business performance tends to lag behind international oil prices, overseas business results in the second half are also expected to improve further.

There is a high possibility that shareholder dividends will resume this year. Although dividends were not paid last year due to large-scale impairment losses in overseas projects, it is reported that 40% of net profit based on separate financial statements will be distributed to shareholders in accordance with the government’s dividend policy guidelines.

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